American focus: the greenback was under pressure

The yen gained  as a report showed economic confidence in the euro region fell in April, boosting demand for the safety of the Japanese currency.

The European Commission said in Brussels an index of executive and consumer sentiment in the 17-nation euro area slid to 92.8 from a revised 94.5 in March. The median estimate in survey was for a drop to 94.2 from a previously reported 94.4.

The yen reversed two days of declines even before a Bank of Japan meets tomorrow, with economists saying policy makers will unveil new easing measures.

The greenback was under pressure on speculation that the Federal Reserve may increase stimulus measures to bolster the U.S. economy after more Americans than forecast filed applications for unemployment benefits last week.

Jobless claims fell by 1,000 to 388,000 in the week ended April 21, from a revised 389,000 a week earlier, which was the highest since early January, Labor Department figures showed today. The median forecast of economists  was 375,000.

Fed Chairman Ben S. Bernanke said yesterday that the central bank will do more to fuel growth if necessary.